Fibertech Networks firms discount on $135 million add-on at 99¾

By Sara Rosenberg

New York, Feb. 24 - Fibertech Networks set the offer price on its fungible $135 million add-on term loan B at 993/4, the low end of the 99½ to 99¾ talk, according to a market source.

Pricing on the add-on, as well as on the repricing of the company's existing term loan B, is still Libor plus 300 basis points with a 1% Libor floor and there is still 101 soft call protection for six months.

A pricing step-down was added to the term loan debt to Libor plus 275 bps based on leverage, the source said.

The repricing is offered at par.

With the add-on, the term loan B will total $511.2 million.

Commitments were due on Monday.

TD Securities (USA) LLC is the bookrunner on the deal.

Proceeds from the add-on debt and cash on hand will be used to fund a dividend, and the repricing will take the existing term loan down from Libor plus 350 bps with a 1% Libor floor.

Allocations are targeted to go out this week and closing is expected on March 7 when the current call protection on the existing term loan B expires, the source added.

Pro forma net leverage is 4.1 times all senior.

Fibertech is a Rochester, N.Y.-based provider of fiber optic bandwidth services.

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